What’s new: A Hong Kong subsidiary of Chinese lithium giant Ganfeng Lithium Co. Ltd. (002460.SZ) plans to invest in a spodumene mine in the western African country of Mali to exploit its lithium resources, according to a Monday company filing (link in Chinese).
The investment will be made through GFL International Co. Ltd., which will spend $130 million to acquire 50% of a Netherlands-based special purpose vehicle (SPV) that was created to hold the mining rights to the Mali project.
After the deal is completed, GFL is likely to invest up to $40 million in exploration at the mine, the Hong Kong- and Shenzhen-listed company said.
The context: The Goulamina mine has explored reserves of 108.5 million tons of spodumene, a source of lithium, which is a key raw material for certain kinds of electric-vehicle batteries.
The price of lithium in China has been on the rise this year due to growth of the country’s new-energy vehicle industry.
If the deal goes through, it will be the first time that Ganfeng Lithium has invested in a lithium mine in Africa. The company has invested in lithium projects in Australia, Mexico and Argentina.
Related: Chinese Lithium Producer to Buy Out Mexican Sonora Project Owner
Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)
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